Moody’s Investors Service reaffirms Tri-State’s senior secured debt rating, stable outlook
- Affirmed its ‘A3’ rating for the cooperative’s senior secured debt; maintains “stable” outlook for the Tri-State.
- Rating agency cites Responsible Energy Plan, efforts to provide member flexibility, and Tri-State wholesale rate reduction for members.
- Tri-State’s ratings remain at investment grade.
(May 19, 2021 – Westminster, Colo.) – Moody’s Investors Service recently affirmed its ratings of Tri-State, including the cooperative’s senior secure debt at an “A3” rating. In addition, Moody’s also maintained Tri-State’s outlook at “stable.”
With the Moody’s affirmation, issued May 3, Tri-State’s ratings remain classified as investment grade, and Tri-State maintains its strong financial position. In its report, Moody’s cited Tri-State’s prospects for maintaining its credit metrics and a strong liquidity profile at levels that can support its existing ratings, all while transitioning through changes to its cooperative business model.
More specifically, Moody’s noted the affirmation is the result of Tri-State shift to regulation of its wholesale power rates by the Federal Energy Regulatory Commission (FERC); it efforts to provide membership flexibility and address membership concerns through partial requirements contracts; and efforts to pare back its capital spending program.
“Our efforts over the past 18 months to address regulatory issues at the federal and state level, reduce our carbon emissions, and demonstrate strong financial performance are reflected in this report. We still have work to do as we transition through our Responsible Energy Plan, but this report helps demonstrate that we’re on the right path,” said Duane Highley, Tri-State CEO.
Highley reiterated that Tri-State continues collaborative efforts with its members, including increasing contract flexibility for power supply and advancing its transformative Responsible Energy Plan, launched in January 2020. Tri-State is transitioning to a cleaner energy portfolio, which includes additional renewables, lower emissions and compliance with all environmental requirements, and lower wholesale electric rates.
Tri-State is power supply cooperative of 45 members, operating on a not-for-profit basis, including 42 utility electric distribution cooperative and public power district members in four states that together deliver reliable, affordable and responsible power to more than a million electricity consumers across nearly 200,000 square miles of the West. For more information about Tri-State, visit www.tristate.coop.
Certain information contained in this press statement are forward-looking statements including statements concerning Tri-State’s plans, future events, and other information that is not historical information. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described from time to time in Tri-State’s filings with the Securities and Exchange Commission. Tri-State’s expectations and beliefs are expressed in good faith, and Tri-State believes there is a reasonable basis for them. However, Tri-State cannot assure you that management’s expectations and beliefs will be achieved. There are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from the forward-looking statements contained herein.